The BBVA share
The BBVA share closed March at €6.43, a fall of 9.6% over the quarter.
Global economic growth has been stable, in line with the start of 2018, although with greater dynamism in emerging economies and some signs of moderation in developed countries. The economic indicators for the first quarter of the year show global growth to be around a quarterly 1%, similar to the figure recorded during 2017. Economic activity continues to benefit from the good performance of global trade and the solid expansion of industrial output. However, confidence indicators appear to have reached a high, with little room for greater optimism, above all in manufacturing industry. Together with a moderation in retail sales, these factors suggest that recovery in consumption will take more time.
Most stock-market indices posted losses in the first half of the year. In Europe, the Stoxx 50 and the Euro Stoxx 50 fell by 6.7% and 4.1% respectively, while in Spain, the Ibex 35 lost 4.4%. The falls were smaller in the United States, where the S&P index lost 1.2% in the last three months.
Regarding shareholder remuneration, in accordance with the resolution of the Annual General Meeting held on March 16, 2018, a cash payment of €0.15 gross per share was made on April 10, corresponding to the final dividend for 2017. For 2018, subject to the appropriate approval from the corresponding corporate bodies, BBVA plans to make a cash dividend payment in October 2018 and April 2019, pursuant to its shareholder remuneration policy announced by publication of a Significant Event on February 1, 2017.
BBVA share evolution
Compared with European indices (Base indice 100=31-03-2017)
In the Significant Event published on February 1, 2017, BBVA announced its intention of modifying its shareholder remuneration policy to one of a fully cash payment. This policy will be formed each year of an interim dividend (which is expected to be paid in October) and a final dividend (which will be paid out upon completion of the final year and following approval of the application of the result, foreseeably in April). These payouts will be subject to appropriate approval by the corresponding governing bodies. It is expected to be proposed for the consideration of the competent governing bodies a cash payment in a gross amount of euro 0.15 per share to be paid in April as final dividend for 2017.
Shareholder remuneration
(Euros-gross/share)
Group information
- The impacts derived from the first application of IFRS 9, as of January 1, 2018, have been registered with a charge to reserves, of approximately €900m, mainly due to the allocation of provisions based on expected losses, compared to the loss model incurred under the previous IAS 39.
- Reduction of 31 basis points in the fully-loaded CET1 ratio in December 2017.
- In the risk metrics, there were very few change; lending fell due to reclassification of portfolios; the NPL coverage ratio rose due to the increase in loan-loss provisions.
- Generalized sustained growth in more recurrent sources of revenue in practically all geographic areas.
- Operating expenses remain under control, leading to an improvement in the efficiency ratio in comparison with the same period in 2017.
- Year-on-year reduction of impairment losses on financial assets not valued at fair value with changes in profit (hereinafter, "impairment losses on financial assets").
- As a result, the net attributable profit was 1,340m, 11.8% higher than the first quarter of 2017.
Net attributable profit (Million euros)
Net attributable profit breakdown(1) (Percentage. 1Q 2018)
(1) Excludes the Corporate Center.
(2) Includes the areas Banking activity in Spain and Non Core Real Estate.
- Loans and advances to customers (gross) continue to increase in emerging geographies but decline in Spain. The recovery that began in the second half of 2017 continues in the United States.
- Non-performing loans continue to improve.
- There was an increase in off-balance-sheet funds, mainly in mutual funds.
- The capital position is above regulatory requirements.
- 13 basis points of fully-loaded CET1 were generated in the quarter, strongly supported by the earnings generated between January and March.
Capital and leverage ratios (Percentage as of 31-03-2018)
(1) Data proforma includes + 57 bp of impacts from announced corporate transactions pending to be closed (sale of RE assets to Cerberus and BBVA Chile).
- Good performance in the quarter of the main credit risk metrics: as of 31-Mar 2018, the NPL ratio closed at 4.4%, the NPL coverage ratio at 73% and the cumulative cost of risk at 0.85%.
NPL and NPL coverage ratios (Percentage)
- The Group's digital and mobile customer base and digital sales continue to increase in all the geographic areas where BBVA operates.
Digital and mobile customers (Millions)
- On April 10 there was a cash payment of €0.15 gross per share, corresponding to the final dividend for 2017, approved by the General Shareholders' Meeting held on March 16, 2018.
Shareholder remuneration (Euros-gross/share)
Results
- Good performance of gross income, thanks to a positive trend in more recurring revenue (particularly income from fees and commissions) and NTI.
- Operating expenses under control.
- This has led to a further improvement in the efficiency ratio.
- Impairment losses on financial assets slightly below the figure for the first quarter of 2016.
- Inclusion of €177m restructuring costs in provisions.
- As a result, the net attributable profit in the first quarter of 2017 was €1,199m, 69.0% higher than in the same quarter last year and 76.8% higher than posted in the fourth quarter of 2016
Net attributable profit (Million euros)
Net attributable profit breakdown(1) (Percentage 1Q 2018)
(1) Excludes the Corporate Center.
(2) Includes the areas Banking activity in Spain and Non Core Real Estate.
Banking activity in Spain
Non Core Real Estate
The United States
Mexico
Turkey
South America
Rest of Eurasia
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